After high in diesel, Bolsonaro changes calculation of road freight table

President Jair Bolsonaro (PL) edited a Provisional Measure to reduce the percentage of variation in the price of diesel oil that serves as a trigger for reviewing the values ​​of the freight table for road freight transport, the Presidency of the Republic said in a note.

With the measure, which comes into force as soon as it is published, but needs congressional approval so as not to lose its validity, the freight table will be revised after a 5% variation in the price of diesel. The previous percentage that triggered the review was 10%.

In addition to the review trigger linked to the variation in the price of diesel in the domestic market, the freight table is reviewed on an ordinary basis every six months by the ANTT (National Land Transport Agency).

As Petrobras’ pricing policy follows the fluctuation of the barrel of oil on the international market, the state-owned company has promoted frequent readjustments in the prices of fuel charged at refineries. The last adjustment, 8.87% for diesel, was implemented last week.

The rise in these products has been one of the main drivers of the recent rise in inflation, which is in double digits in the 12-month period.

At the same time, a readjustment in freight prices tends to have an impact on the increase in prices charged for other products, especially food, since road transport is the main mode of transport in the country.

The discontent of truck drivers with diesel oil prices was one of the main factors that led to the category strike in 2018, which had an impact on the economy and paralyzed the country.

Source: Reuters